Kyndryl Holdings, Inc.

DB:7XU Stock Report

Market Cap: €7.6b

Kyndryl Holdings Valuation

Is 7XU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7XU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7XU (€33.12) is trading below our estimate of fair value (€55.7)

Significantly Below Fair Value: 7XU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7XU?

Key metric: As 7XU is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 7XU. This is calculated by dividing 7XU's market cap by their current revenue.
What is 7XU's PS Ratio?
PS Ratio0.5x
SalesUS$15.30b
Market CapUS$8.06b

Price to Sales Ratio vs Peers

How does 7XU's PS Ratio compare to its peers?

The above table shows the PS ratio for 7XU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
BC8 Bechtle
0.6x6.8%€3.9b
NA9 Nagarro
1.4x10.3%€1.3b
SANT Kontron
0.6x8.0%€1.1b
YSN secunet Security Networks
1.8x8.0%€688.4m
7XU Kyndryl Holdings
0.5x1.6%€8.1b

Price-To-Sales vs Peers: 7XU is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does 7XU's PS Ratio compare vs other companies in the DE IT Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
ASKN asknet Solutions
0.01x20.1%US$984.32k
No more companies available in this PS range
7XU 0.5xIndustry Avg. 0.7xNo. of Companies6PS00.61.21.82.43+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 7XU is good value based on its Price-To-Sales Ratio (0.5x) compared to the German IT industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 7XU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7XU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: 7XU is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7XU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€33.12
€36.65
+10.7%
5.4%€38.18€33.41n/a5
Nov ’25€21.13
€29.07
+37.6%
4.8%€30.45€27.68n/a4
Oct ’25€20.60
€28.83
+39.9%
4.8%€30.20€27.46n/a4
Sep ’25€21.15
€28.83
+36.3%
4.8%€30.20€27.46n/a4
Aug ’25€21.96
€28.83
+31.3%
4.7%€30.49€27.72n/a5
Jul ’25€24.49
€29.15
+19.0%
4.7%€30.84€28.03n/a5
Jun ’25€24.14
€27.81
+15.2%
7.1%€30.59€25.03n/a4
May ’25€18.31
€27.52
+50.4%
17.8%€37.17€23.47n/a5
Apr ’25€19.94
€23.80
+19.4%
6.9%€25.63€21.05n/a5
Mar ’25€20.45
€23.58
+15.3%
5.9%€25.06€21.35n/a5
Feb ’25€18.78
€21.66
+15.3%
10.6%€23.87€17.44n/a5
Jan ’25€18.96
€20.15
+6.3%
13.6%€22.90€17.40n/a4
Dec ’24€17.00
€19.42
+14.2%
12.0%€23.40€17.78€33.124
Nov ’24€13.78
€18.05
+31.0%
18.9%€23.45€14.07€21.134
Oct ’24€14.34
€18.29
+27.5%
18.7%€23.45€14.07€20.604
Sep ’24€15.46
€17.29
+11.8%
22.1%€23.05€13.83€21.154
Aug ’24€11.94
€14.76
+23.6%
22.1%€20.30€11.99€21.964
Jul ’24€12.18
€14.76
+21.2%
22.1%€20.30€11.99€24.494
Jun ’24€11.48
€14.76
+28.6%
22.1%€20.30€11.99€24.144
May ’24€13.16
€15.28
+16.1%
20.0%€20.07€11.86€18.314
Apr ’24€13.14
€14.05
+6.9%
10.9%€15.92€12.17€19.943
Mar ’24€14.70
€14.05
-4.4%
10.9%€15.92€12.17€20.453
Feb ’24€12.27
€12.29
+0.1%
3.5%€12.90€11.98€18.783
Dec ’23€11.14
€12.04
+8.1%
8.3%€13.05€11.04€17.002

Analyst Forecast: Target price is less than 20% higher than the current share price.

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